2017 Economic Calendar
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Business Inventories  
Released On 1/13/2017 10:00:00 AM For Nov, 2016
PriorPrior RevisedConsensusConsensus RangeActual
Inventories - M/M change-0.2 %-0.1 %0.6 %0.1 % to 0.7 %0.7 %

Data on fourth-quarter inventories are looking heavy, up 0.7 percent in November in an offset to a revised 0.1 percent draw in October. Both retailers and wholesalers show large 1.0 percent builds in November with manufacturers at a 0.2 percent build. Given weakness in total sales, up only 0.1 percent, the stock-to-sales ratio rose 1 tenth in the month to 1.38.

Rising inventories are often a negative for future production and employment but they are a positive for GDP where the fourth-quarter calculation will get a lift from November's build. A tangible positive in the report is that half of the build among retailers was at auto dealers who, based on this morning's retail sales report, enjoyed very strong sales in December.

Consensus Outlook
Demand may be on the rise but inventories, based on advance data, appear to have risen sharply in November, raising the risk of an excessive build. Forecasters see business inventories rising 0.6 percent following October's 0.2 percent draw. High inventories are a plus for the GDP calculation but pose a risk to future production and employment.

Business inventories are the dollar amount of inventories held by manufacturers, wholesalers, and retailers. The level of inventories in relation to sales is an important indicator of the near-term direction of production activity.  Why Investors Care
Inventories tend to rise when economic conditions are strong since sales are rising at the same time, the inventory-to- sales ratio may remain stable, or rise at a very slow pace. Inventories tend to when economic conditions are weak since sales are falling at the same time, the inventory-to-sales ratio may remain relatively stable. The I- S ratio then begins to rise as sales fall more quickly than inventory growth.
Data Source: Haver Analytics

2017 Release Schedule
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